Donnish Journal of Law and Conflict Resolution

August 2017 Vol. 3(1), pp. 018-024

Copyright © 2017 Donnish Journals

Original Research Article

Retirement Planning in Nigeria: Issues and Challenges of Law and Pension Policy Objectives

Macaulay J. D. Akpan

Senior Lecturer, Law Unit, Department of Accountancy, Akwa Ibom State Polytechnic, Ikot Osurua and Facilitator, NOUN, Uyo Study Centre.

Corresponding Author's Email: mackinsav@yahoo.com

Accepted 19th July, 2017.

Abstract

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The salary structure of employees is usually fixed based on obvious indices. The failure to routinely review a number of social and economic factors in the formulation and implementation of a salary structure through established policy instruments usually impacts negatively on employees upon retirement. This paper therefore holistically examined the issues and challenges of retirement planning in Nigeria against the backdrop of salary structure vis-à-vis the impediments of laws and pension policy objectives. Also, the examination x-rayed the laws that inhibit doing of business by employees and the capacity of employees to save a sizeable and reasonable amount while in service so as to guarantee them financial freedom upon retirement. This examination is based on doctrinal, primary and secondary research methods. The paper finds that due, largely to a paradigm shift from the old “Defined Pension Scheme of Pay As You Go” to the new Contributory Pension Scheme - wherein the Scheme is to be funded by the employers and employees, under a private management system. Also, it finds that the employees’ monthly emoluments and the statutory 18% contributions between the employers and employees towards the retirement savings account for each employee cannot guarantee financial freedom upon retirement to employees. This paper, therefore recommends among other things, that the extant laws that prohibit and inhibit employees in ease of doing business should be amended to create ample and authorized space for them to engage in business at the close of work (from 2pm) instead of the usual 4pm.

Keywords: Salary Structure, Retirement, Pension, Employers, Employees.

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Cite This Article:

Macaulay J. D. Akpan. Retirement Planning in Nigeria: Issues and Challenges of Law and Pension Policy Objectives. Donnish Journal of Law and Conflict Resolution 3(1) 2017 pp. 018-024.